Preliminary cost of London’s homelessness strategy in the hundreds of millions

A municipal document obtained by CTV News is the first to shed light on the anticipated cost to build and operate London, Ont.’s Whole of Community Response to Homelessness.

The long-term strategy to address the homelessness crisis was the result of three summit meetings held by frontline agencies and stakeholders last winter.

The goal is to open 12 to 15 low-barrier service hubs and 600 highly supportive housing units, the first five hubs and 100 units before the end of this year.

But an estimated price tag for the strategy hasn’t been shared publicly— until now.

The municipal document estimates that capital costs to build and outfit the Service Hubs and Supportive Housing Units will total $247.5 million.

• 15 Service Hubs for $30 million
• 580 Supportive Housing Units in 29 new buildings for $217.5 million

Annual operating costs are estimated at an additional $90.5 million.

• 13 Service Hubs $32.5 million/ year
• 580 Supportive Housing Units $58 million/ year

The document added that the city has already secured funding to operate 2 hubs and build/operate 20 housing units.

After being shown the cost estimates by CTV News, Councillor Susan Stevenson was surprised, “This is the first time I’ve seen that, and I’m assuming none of my fellow councillors have either!”

For months, Stevenson has pushed for politicians to be included in the development of the Whole of Community Response to Homelessness on behalf of taxpayers.

However, City Manager Lynne Livingstone has warned that the presence of politicians at the roundtable discussions would introduce an uneven power dynamic and possibly jeopardize the fragile collaboration between city staff, frontline agencies, and stakeholders.

“I asked for the monthly reports and they’ve been either intentionally or unintentionally vague. We seem to get the dates of when meetings happened, but the details aren’t there,” Stevenson explained.

Mayor Josh Morgan has led the city’s lobbying efforts seeking funds from the provincial and federal governments.

Morgan confirmed that the figures obtained by CTV News were the preliminary cost estimates presented to the senior levels of government in the spring.

“What we committed to in those meetings was giving them a high-level overview about the potential costs that we’re looking at, as well as a commitment to do the more detailed design work,” he told CTV News.

The city has received a $25 million dollar anonymous donation to help launch the Whole of Community Response to Homelessness.

Morgan explained that costs are being further refined through ongoing design work and the recent creation of 40 supportive housing units on Thompson Road.

When asked how the quarter-billion-dollar capital estimate and $90.5 million annual operating expense was received by senior governments, he maintained the lobbying meetings were “positive”.

“It should come as no surprise, and it hasn’t, that the numbers are very big to meet the needs of the challenge that we see in communities across this country,” said Morgan.

He committed that council will be getting detailed plans with better cost estimates, “What council is going to get is a more detailed design and a very specific [funding] ask that is going to be more in line with what we actually need.”

Stevenson remained frustrated by the amount of information released to councillors and the public.

“If there’s an insiders club, it would be nice to know who’s in it, because the city councillors sure aren’t,” she fumed. “So is it the health and homeless summit? Did they get a chance to see this? Or do they know? The [city’s] senior leadership team? The mayor?”

The mayor flatly rejected the notion of an “insiders club” regarding the development of the homelessness strategy.

“No, I do the government lobbying on behalf of council. I’ve been very transparent in the lobbying that I’m doing, even providing reports to council.” Morgan responded. “So if any councillor has any questions about the type of things that I’m talking about [with senior governments], I’m happy to have conversations with them anytime.”